Retirement Planning

11 Nov 2016: The age profile of the tanker fleet gives owners reason for concern. The orderbook for delivery in 2017 and 2018 ranges from a modest 5% of the existing fleet for Handy’s to a whopping 19% for Suezmaxes. However, tanker markets do have a built-in balancing mechanism: scrapping. If the overcapacity in the market gets too high, rates will fall and scrapping will pick up to (eventually) bring the market back into balance (together with demand growth, off course). Given the orderbook, the consensus view of analysts is that the tanker market will experience ample supply growth in the coming years while the forecasts for tanker demand growth are rather subdued. Against this backdrop, what is the potential for a pickup in tanker demolition? Let’s take a look at the pool of available candidates and their current employment. Please fill out the form to read full article.